Household deposits are increasing again.

According to the latest data from the State Bank of Vietnam, as of the end of February, household deposits in the banking system reached a record high of nearly 6.64 million billion VND, an increase of 1.6% compared to the beginning of the year. Thus, after a decline in the first month of the year, household deposits in the banking system have returned to an upward trend.

Meanwhile, deposits from institutions and businesses decreased sharply. This group deposited 6.52 million billion VND in the banking system, down 4.66% compared to the beginning of the year.

The decline in the corporate sector led to a slight decrease in total deposits flowing into the system as of February, from over 13.17 million billion VND at the end of January to 13.16 million billion VND.

This year, the pace of deposit mobilization by banks has slowed down significantly. According to financial reports, as of the end of the first quarter, many banks had the highest growth rate in customer deposit balances in Q1/2023, reaching 8-19%, but this year the increase is only below 5%. The number of banks recording a decrease in deposit balances in the first three months of the year has also increased sharply.

Recently, commercial banks have simultaneously increased savings interest rates, but the average remains low, around 5% per year.

Mr. Dinh Duc Quang, Managing Director of the Currency Trading Unit at UOB Vietnam, believes that the interest rate hike, in addition to following international market trends, aims to balance the returns of other investment channels such as gold and stocks. Furthermore, he predicts that deposit interest rates will increase by 0.5-1% across different maturities from the second half of this year, as credit recovers.

According to data from the State Bank of Vietnam, credit growth across the entire system as of the end of April remained below 2%, lower than the same period in previous years. Experts from UOB Vietnam believe that system liquidity is not facing problems and there are no concerns about the demand for high-interest deposits or a reversal in monetary policy, i.e., from the current loose stance to a tighter one to control inflation and support the exchange rate.

TB (according to VnExpress)

Source: https://baohaiduong.vn/tien-gui-dan-cu-tang-tro-lai-383420.html